Why Is the Expected Price Level Significant

question 24

Multiple Choice

Why is the expected price level significant?  

• A) because it is the equilibrium price level in the short run 
• B) because it determines the actual price level in the short run 
• C) because it determines the actual price level in the long run 
• D) because firms and resource owners make long-term agreements based on the expected price level

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Definitions:

Low Conformers

Individuals who tend not to follow the norms or standards set by their social group or society.

Tolerate

To allow the existence, presence, or practice of something that one does not necessarily like or agree with, without interference.

Self-Expression

The act of conveying one’s thoughts, feelings, or ideas through various forms such as speech, writing, or art.

Avoider

Someone who would rather not be around conflict at all and values neutrality highly.